Residential Construction Booming in South Florida

The latest numbers from McGraw Hill Construction show that total contracts awarded for South Florida construction projects grew 10% to $3.5 billion in the first half of 2014, fueled by residential development. With new condo and apartment buildings going up around the tri-county area, residential construction contracts in June were up 97% over the prior year at about $400 million compared to $203 million in June 2013.

Hiring has picked up, too. In June, Broward County added 4,200 construction jobs (a 13% increase over the same month last year) and Palm Beach County added 2,700 (a 10% increase), according to the Sun-Sentinel. Most of the jobs were for specialty contractors.

Hiring was among the top concerns shared by construction executives at Kaufman Rossin’s construction roundtable earlier this year. Several executives said they were facing labor shortages and have had to raise salaries to attract and retain workers.  In some cases, labor shortages have contributed to construction delays and higher home prices.

While there still appears to be a labor shortage for some specialized skill sets, the recent increases in both hiring and construction contracts are good signs for South Florida’s construction industry.